Utilize este identificador para referenciar este registo:
https://hdl.handle.net/1822/65727
Título: | Foreign direct investment with tax holidays and policy uncertainty |
Autor(es): | Azevedo, Alcino Pereira, Paulo J. Rodrigues, Artur |
Palavras-chave: | FDI Real options Tax holidays Taxation policy Uncertainty |
Data: | 1-Abr-2019 |
Editora: | Wiley |
Revista: | International Journal of Finance & Economics |
Citação: | Azevedo, A., Pereira, P. J., & Rodrigues, A. (2019). Foreign direct investment with tax holidays and policy uncertainty. International Journal of Finance & Economics, 24(2), 727-739 |
Resumo(s): | We study foreign direct investment agreements that entitle firms to a lower tax rate during a tax holiday period. Our model considers both finite and uncertain tax holiday period settings. We show that the tax holiday duration may have, for small tax rate reductions, a nonmonotonic effect on the investment timing. For sufficiently high tax reductions, a longer tax holiday speeds up investment. A higher tax reduction during the tax holiday and a lower uncertainty are shown to have a monotonic effect on the threshold, hastening investment. However, in case of a finite tax holiday, for exceptional high salvage values, a higher uncertainty can speed up investment. We show the usefulness of our model to design an optimal incentives package that prompts investment. |
Tipo: | Artigo |
URI: | https://hdl.handle.net/1822/65727 |
DOI: | 10.1002/ijfe.1688 |
ISSN: | 1076-9307 |
e-ISSN: | 1099-1158 |
Versão da editora: | https://onlinelibrary.wiley.com/doi/full/10.1002/ijfe.1688 |
Arbitragem científica: | yes |
Acesso: | Acesso aberto |
Aparece nas coleções: | NIPE - Artigos em Revistas de Circulação Internacional com Arbitragem Científica |
Ficheiros deste registo:
Ficheiro | Descrição | Tamanho | Formato | |
---|---|---|---|---|
ijfe_1688_Rev_EV.pdf | 751,17 kB | Adobe PDF | Ver/Abrir |